Why Do Industry Leaders Dominate Their Markets?
There is a clear cut reason why industry leaders in your area outperform the smaller supposedly more nimble and quick to adjust companies in their market. These industry leaders manage to dominate their markets and maintain their dominance even with larger overheads, often more employee turnover, and with higher prices. So what is it?
- Quality of products or services?
- Their name and reputation?
- Experience and business acumen?
Let’s examine some of these.
Every company should believe that they offer top quality service! Some do, others – not so much! But while quality is an important trait to strive for, it will not guarantee market dominance or even success. Many companies offer superior quality and fail to take off while the industry leader many times gets by with acceptable service or better.
While a startup company offering superior or more personalized service may grow into a viable business based on that service, growing pains and scale make it impossible to consistently maintain that quality and personalized service over the long haul.
McDonalds – Industry leader with hundreds if not thousands of competitors who make a more tasteful and nutritious burger! Enough said!
Name & Reputation:
Here is a real chicken or the egg question. Sure being a household name helps a business. Even a household name without a sterling reputation is pretty desirable. But how did they get that name recognition? It was through market domination!
Certainly experience plays a huge factor in success of a business. Electricians have to know what they are doing and get licensed by the State in order to do business. So trade experience is valuable, but also places every electrician on somewhat of a level playing field.
Business acumen is a huge factor in very successful companies! Being able to manage people, budgets, and logistics allows them to grow past successful into market dominance. Knowing how and when to do a multitude of tasks, problems and procedures can keep the business running smoothly, but there is still one ingredient that overrides all others and makes a company dominate in their marketplace.
They Get More Customers!
That’s right, to dominate your industry in your market you have to become a customer getting machine!
You have to outperform all other companies in just one area – Customer acquisition!
Your marketing has to be smarter. You must use your marketing dollars wiser and be less wasteful because unless you have very deep pockets you cannot afford to outspend your competitors to get new customers. You must to be creative. You have to find inexpensive ways to get your name out there and you have to get in front of your potential customers, current customers, and past customers more often than your competitors can.
As The Underdog You Have One HUGE Advantage!
The industry leader has grown fat and happy. All the leader has to do is exactly what they have always done to get more business. They don’t have to be creative, or smart with their marketing, if business goes down the leader throws a little more of their marketing budget at the problem. Money well spent? Who cares! They are industry leaders. That’s what they’ve always done (after they forgot what it meant to be lean and mean).
To compete in your market you have to do all of the smart things the industry leader does and none of the branding that may or may not gain new customers. You can’t afford expensive billboards just to hear two new customers say I saw your billboard, and certainly any commercials should actually be about your company’s products or services, and not leaving the viewers wondering what the commercial is about half way through it.
But the great equalizer and biggest opportunity for all businesses is online marketing! When done correctly, Mom & Pop can compete with Goliath and really kick butt! Mom and Pop can dominate online over even the biggest competitors without breaking the piggy bank. Every penny spent goes directly towards client acquisition, and it is measurable! Ask a billboard to do that!
Remember that commercial? Online it becomes a lead magnet for you, directing new customers to your door and best of all, it costs nothing to run! Here is an example:
Just one of many ways to inexpensively make your phone ring off the hook.
If you want to compete in your market and grow your business take a good hard look at what your competitors are doing online.
Remember, not everything they are doing is right or cost effective.
Most companies lack the expertise to do their own online marketing correctly. They end up trying a few things while mostly failing to get any results and then they give up thinking online marketing is a waste of money.
I ask you this… If online marketing does not work, why do all of the industry leaders have a significant presence online?
They know! It does work when they hire an online marketing agency that knows what they are doing.
So if you want to be successful and grow your business, do what industry leaders do! Hire a great online marketing company to help with your customer acquisition.